Leaving a will and an estate plan is the best way to protect your assets in Illinois. You can also use this opportunity to set up a fund for your designated beneficiaries. The person whom you appoint as trustee will carry out your wishes in this regard. There are two major types of trusts you can have recourse to.
A revocable trust can be changed over time
You may choose to conclude your estate planning venture by authorizing the establishment of a living trust. If this is the case, you will be creating the kind of document that you can make changes to over the years. This will be particularly useful if you feel the need to name new beneficiaries.
You can also make other changes, such as removing your present trustee in favor of a new one. If need be, you can make sweeping changes to your trust as a whole. These may include changing the amount and nature of the assets you leave behind. You can also decide to scrap the trust in favor of a wholly new one.
An irrevocable living trust can’t be changed
An irrevocable living trust is one that can’t be altered once you have signed it into being. The money and other assets that you include in this type of trust are thus set in stone. This also applies to the trustee that you place in charge as well as the beneficiaries you designate to receive your assets after you have passed.
One of the main reasons to establish this type of trust is to shelter the assets involved from creditors. They provide federal and state tax protection. An irrevocable inter vivos arrangement can also be used when setting up a trust that is meant to benefit a charity.